Q&A — 4: Primalbase ICO
1. Who is the real team? Developers? Managers?
The team consists of 15 people in total based in several locations around the world (Helsinki, Madrid, Moscow, London, as well as the US) with a few people based permanently in Amsterdam. We have already aligned the team that will join post ICO, including a few senior executives with excellent credentials and experience.
2. Who are the escrows?
For additional security of transactions multi-signatures are going to be deployed.
3. Where is Primalbase incorporated?
At the moment, Primalbase is renting the office space in Amsterdam under individual agreement with the right to switch the lease. As the business is meant to be international we are planning to do full corporate setup post ICO by creating a group holding structure, as well as several operational companies. Otherwise it would’ve required ownership change which would also complicate account opening process in certain jurisdictions.
Registering a company in kvk or in similar system in the UK takes about 10 minutes of one’s time, so it is not the most pressing issue at the moment. While changing the ownership might take a few weeks considering the logistics and time required for full KYC on the new parent company. It is much better and wiser to do it from the start.
4. Is the plan to purchase actual buildings outright?
As for Primal hubs, we are exploring the potential to build them in the chosen locations, as it is very hard to find the right property to purchase without paying a huge premium on it. However, we would explore an outright purchase and long-term leases if the figures allow.
5. You’re sharing profits, the tokens are securities right? What % of profits is distributed among token holders? What will be the time frame?monthly?quarterly?
The PBT token is not an equity. When it comes to developing Primal hubs, we would like to emphasize the potential benefits for early investors — they will always be treated with preference in all our future endeavours.
One can see it as follows: there is a token that provides you with a certain monetary value on the market, which due to gradual expansion to new locations, and continuous provision of organic marketing to attract new tenants under traditional business model, which will cover operational costs. The increasing demand for tokens is therefore pushing the price up even further.
The percentage share split is an icing on the cake, it is our commitment to make it right for early investors to make sure that the first 1000 are always winning no matter what happens in the business.
6. Who legally owns the building? The token holders? The managing company? Third party?
Please see Q&A3.
7. Who is Primalbase renting it from?
Currently Primalbase is renting a floor from one of the tenants in the building at 25 Helicopterstraat in Amsterdam.
8. How to purchase tokens on the day? Could you please point in the right direction? QR or an address?
You can purchase tokens via your account. One week prior the ICO you will be able to open an account on Primalbase website. Please, make sure to subscribe to our newsletter to find out when this functionality will be available.
9. What site will you use to determine the rate of bitcoin on the day of sales?
Coinmarketcap.
10. Could I make payment for token via my coinjar/ Poloniex/etc? And depending on the rate decide to transfer via bank account how is this done as an instant transaction(to make it for the initial promotion value) as this could take time to clear.
You can make a payment in cryptocurrency from any service you use, fiat is not accepted.
11. Will Primalbase insist on creating teams to produce one whole token for a space? What if you can’t manage to find a team to create 1 whole coin or some people invest fractions of a token and choose to never lease it but purely as an investment (or even lost passwords to their account), wouldn’t this create even more difficulty in creating a team? And being able to maximize office spaces 1250 coins 1250 spaces but only say 9800 available tokens.
We don’t want to impose any restrictions on Primalbase members. They are free to decide what to do with the tokens. There are a few basic scenarios and a whole range of individual scenarios, therefore we don’t want to create any strict rules or protocols. If one loses his private key, it is similar to losing the key to Bitcoin wallet, and we hope nothing like this will happen.
12. What happens when company can’t rent out enough offices to cover lease fees and other operation costs?
It is not even an option.
13. Can I get a seat from Primalbase if I pay cash?
As we explained earlier, the project implies having two parts. The first one is based on classic real estate relations, i.e. renting office spaces to project teams, startups, companies, etc. Payments are accepted in national currency of the country hosting Primalbase workspace.
The second part implies tokenizing Primalbase membership. This means that one cannot get access to Primalbase workspaces paying in fiat. It can be done only through a purchase or a lease of a token from the original token holder. This is the only way to create value, otherwise it just doesn’t make sense.
14. However do I own others, for example, the price of PBT is 5 BTC? Is there a chance that this price will be 10x higher at the end of ICO? What are your expectations for the price?
We don’t make any predictions as for the price of BTC on the day of ICO and further.
15. Will the token be kept in Waves wallet (which I’ve only just opened so trying to understand it) or represented on the crypto currency exchange and stored in a wallet such as Bitrex or Coinbase?
The token will be stored in a cryptocurrency wallet. Plus, if the token becomes available on the exchange, it will be on your account on the exchange.
16. Why use blockchain for this? To make it easier for you to raise funds?
Shared workspace model has proved to be extremely efficient without blockchain, this is true. On the other hand, this technology significantly streamlines and simplifies the lease relations. It makes leasing an attractive investment into a life-lasting product. Blockchain technology transfers lease relations in a rather interesting space in this sense — you can lease your membership making profit or sell it at any point. Blockchain technology is not useless here, it fits naturally in this kind of model.
Besides, crowdfunding on blockchain is an efficient way to attract investments into one’s project. The Blockchain is not useless here, it is very logically built into the lease relations.
17. So you still need to have non-token holders to make your profit?
Our aim is to combine crypto economy with the real one. We cannot drop one or another, they are not isolated from each other. We cannot and should not introduce additional restrictions in terms of availability of leasing mechanisms. We don’t intend to be a thing-in-itself, we are striving to be as open, accessible and flexible as possible.
18. Why use tokens at all, it has to be propped up with real renters anyway or it won’t work?
Primalbase project implies having two parts — traditional lease relations, and tokenization of the membership, which are perfectly balanced while also opening room for more flexibility. If we direct our focus to only one part, it would be a completely different project. Our aim is to combine these two.
We see that this model is attractive for both categories of residents — those who prefer traditional lease relations, and those holding tokens.
19. But you don’t need blockchain? It doesn’t add anything to your business.
The Blockchain makes lease relations an attractive investment.
20. What if all 1000 token get sold in first minute? ICO is over?
Yes.
21. Is there a cap on how much one investor can invest?
Yes, there is a cap — one investor cannot purchase more than 1000 PBT.
22. Is there a transaction at all with these tokens? Didn´t see one anywhere.
Tokens are not in circulation at the moment, they will be released post-ICO, it is a common practice in the space.
23. Why the 3 months minimum leasing time? Given that it is not an office space it would make more sense to rent it by half a day or day.
There is a reason behind 3 months minimum leasing time. Possessing PBT token gives an access to the infrastructure AND community. It simply doesn’t make sense to get an access to tech community for half an hour or one minute.
We are aiming to build a strong tech community, it cannot be done given that faces are changing every half an hour. If one decides to purchase a Primalbase membership, it means only one thing — he is serious in his intentions to develop as a part of Primalbase community. With no time or geographical limits.
24. Not sure i get it, 4 PBT gives you the same rights as 1 PBT, why people want more PBT. if this is like a membership, then you either own or not, why someone would want more tokens if they give the same rights?
4 Primalbase tokens mean 4 memberships in Primalbase community. There are two scenarios — if purchased by one person, it could mean that one is purchased for a personal use, while other three are going to be leased to someone else. On the other hand, 4, 5 or 15 tokens can be purchased by a startup to have a guaranteed access to workspaces in locations they travel on a regular basis.
Besides, 4 tokens give an access to an office, which is usually leased through a traditional leasing mechanism. The access to the office is granted depending on its availability.
25. How to purchase tokens on the day? Could you please point in the right direction?QR or an address?
Please sign up to our newsletter at primalbase.com. All instructions on the ICO process will be sent soon.
26. Will this system be present worldwide or will it depend on the ICO funding?
Please, consult our Roadmap. Next locations will be opened in Berlin, New York, London, and Singapore. Residents are welcome to make suggestions on opening workspaces in other locations. It will be further negotiated and decided upon within Primalbase community.
27. Do you have some meeting room? Can a startup with 4 persons hold a meetup or product show at Зrimalbase? How will the attendants access to Primalbase office? The attendants may just be interested in the team’s product.
Yes, sure, there will be meeting rooms and event spaces. Mechanism of granting access to visitors is simple, it is similar to existing coworking spaces.
28. If i rent my tokens to other people will I get my refund in fiat or in tokens?
All transactions are peer-to-peer, therefore, you are free to negotiate terms and conditions with the one you are leasing your token to, meaning you can accept payment in any currency you want.
29. If I have a token for how long can I book a space? Can I book once indefinitely, or do I need to have separate bookings for each month/week/day that I plan to attend?
Booking will be done through a mobile application. To keep track of availability of the space, residents will be kindly asked to make bookings for the upcoming month.
Check also our previous Q&A posts:
